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Delegation and Motivation

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Author Info

  • Lukas ANGST

    (Department of Economics, University of Zurich)

  • Karol Jan BOROWIECKI

    ()
    (Department of Economics, Trinity College Dublin)

Abstract

In this article we study the determinants of decision rights transfer and its effects on the motivation of an agent. The study is based on a laboratory experiment conducted on 130 subjects playing an innovative principal-agent game. Interestingly, the results show that agents do not favour a delegation and a decision is considered rather burdensome. Although the experiment could not give support for the behavioural hypothesis of higher effort provided by participants who receive choice subsequently, the survey illuminates the interaction between delegation motives, effort motivators, goals and other perceptions of the agents.

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Bibliographic Info

Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep1611.

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Length: 44 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:tcd:tcduee:tep1611

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Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/
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Keywords: organizational behavior; incentives; experiments and contracts;

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References

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  1. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Scholarly Articles 4554125, Harvard University Department of Economics.
  2. Ernst Fehr & Holger Herz & Tom Wilkening, 2012. "The lure of authority: Motivation and incentive effects of power," ECON - Working Papers 099, Department of Economics - University of Zurich.
  3. Matthew Rabin, 2001. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Method and Hist of Econ Thought 0012001, EconWPA.
  4. Jan Zabojnik, 2002. "Centralized and Decentralized Decision Making in Organizations," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 1-22, January.
  5. Baker, George & Gibbons, Robert & Murphy, Kevin J, 1999. "Informal Authority in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 56-73, April.
  6. Roland Bénabou & Jean Tirole, 2002. "Self-Confidence And Personal Motivation," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 871-915, August.
  7. Anthony M. Marino & John G. Matsusaka, 2005. "Decision Processes, Agency Problems, and Information: An Economic Analysis of Capital Budgeting Procedures," Review of Financial Studies, Society for Financial Studies, vol. 18(1), pages 301-325.
  8. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
  9. Cremer, Jacques, 1995. "Arm's Length Relationships," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 275-95, May.
  10. Bauke Visser, 2007. "Motivating Through Delegating Tasks or Giving Attention," Journal of Law, Economics and Organization, Oxford University Press, vol. 23(3), pages 731-742, October.
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  1. Delegation in Wikipedia (English)

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